Village of Orland Park Bond Refund Saves Village $800,000

Village of Orland Park Bond Refund Saves Village $800,000
Posted on 08/21/2012

The Village of Orland Park continues to pursue the opportunity to refund its outstanding debt. Taking advantage of these refunding opportunities ensures that the village is paying the lowest interest rates available in the municipal bond market, given the village's excellent bond rating and financial position.

On August 20th, the village sold general obligation refunding bonds, in the amount of $9,005,000 to partially refund its out-standing General Obligation Bonds, Series 2006. These bonds were originally issued to partially fund construction of the police facility at 151st & Ravinia Avenue.

"We are very pleased with today's news," said Orland Park Mayor Dan McLaughlin. "The village's strong credit rating has enabled the village to save a great deal of money, more than $800,000. This reaffirms Orland Park's credibility in being fiscally responsible," the mayor said, adding, "This is great news for the village."

Barbara Chevalier, of Speer Financial, said, "This is a sign of how attractive Orland Park's bonds are. One buyer improved their bid ten times, another eleven times." She added, "Orland Park's ratings are signs of the solid nature and Orland Park is a well known name."

The results of this refunding were extremely favorable and provided interest savings of approximately $832,000 over the original remaining life of the bonds.

"The Village of Orland Park's bond rating remains high as the country continues to recover while other government agencies struggle to maintain healthy bond ratings," said Trustee Brad O'Halloran, chair of the village's Finance Committee.

As part of this refunding, the village obtained updated credit ratings from Moody's and Standard & Poor's. Each rating agency reaffirmed the village's strong credit rating; Moody's issued a rating of Aa1 and Standard & Poor's issued a rating of AA+. Both agencies cited that the ratings reflect the village's large and stable tax base, as well as stable financial operations supported by healthy reserves, as the rationale for the strong rating.